Owners of Mustang oil project in Alaska miss loan payment
ANCHORAGE, Alaska (AP) — The owners of the Mustang oil project on Alaska’s North Slope have missed the first loan payment to the state as limited quantities of oil have begun flowing, officials said.
Caracol Petroleum LLC missed an October loan payment to the Alaska Industrial Development and Export Authority, the Alaska Journal of Commerce reported Tuesday.
Caracol was due to make a $3.1 million payment Oct. 1 based on a agreement made in May, but the payment had not been received as of Dec. 23, the authority said.
The payment was part of a recently restructured financing plan with a quarterly payment schedule. Caracol incurred $310,000 in late fees and penalties for not making the missed payment within 30 days, the authority said.
The development and export authority sold its majority interest in the project’s holding companies, Mustang Operations Center-1 LLC and Mustang Road LLC, to Caracol for $64 million plus $6 million in accrued interest.
Anchorage-based Brooks Range Petroleum Corp., which operates the field, began producing oil from the Mustang project in early November after years of delays brought on by collapsed oil prices and other financing challenges.
Majid Jourabchi, CEO of Brooks Range’s parent company, Thyssen Petroleum, said last month that the company started producing about 620 barrels of oil per day. Jourabchi could not immediately be reached for comment.
Representatives for Caracol and its parent company, Singapore-based Alpha Energy Holdings, also could not immediately be reached for comment.